DEPARTMENT: Office Of Risk Management
FILE TYPE: Consent Action
TITLE
title
Authorization To Renew Commercial Automobile Insurance Contract With Travelers Insurance
end
PURPOSE/ACTION REQUESTED
Authorize the Director of Risk and Emergency Management to renew the commercial automobile insurance contract with Travelers Insurance.
SUMMARY
While Dakota County is self-insured for general liability exposures, the County purchases several types of commercial insurance (property, crime, and auto) when it makes financial sense. The County’s auto insurance policy with Travelers Insurance is up for renewal on July 1, 2026. Marketing of the auto insurance and benchmarking with other metro counties confirms that Travelers Insurance pricing for the County is still competitive.
The auto insurance market for both the public and private sectors has experienced significant hardening driven by rising frequency and severity of natural disasters, increased repair costs, and a notable uptick in severe accidents. The public sector continues to face additional challenges due to the heightened risks associated with law enforcement vehicle liability. These market conditions have substantially limited the County’s options for vehicle insurance. Our broker was unable to secure alternative quotes for this renewal period, and Travelers-our long-standing insurer-has indicated they are no longer writing new public sector policies. However, they will continue to insure the County based on our long-term relationship and strong loss control practices.
In 2025, to address rising premium costs, Risk Management conducted a vehicle claim loss analysis which demonstrated cost savings by self-insuring the County's licensed fleet for physical damage. As a result, the County moved to a liability-only policy with Travelers in July of 2025. A review of the past 12 months of claims continues to validate the financial benefit of this model.
Travelers Insurance has provided a liability-only auto renewal quote of $451,830, which includes third-party liability coverage with per-claimant limits of $500,000 and per-accident limits of $1,500,000, consistent with Minn. Stat. § 466.04. The policy continues to carry a $25,000 liability deductible. The quote reflects a 3 percent increase over the 2025/2026 policy premium.
Risk Management continues to focus on preventing avoidable losses and working with departments to address needed improvements. Over the past two years, claim trends show a clear decline in both the frequency and severity of losses.
RECOMMENDATION
recommendation
Staff recommends that the County Board authorize the Director of Risk and Emergency Management to renew the commercial automobile insurance contract with Travelers Insurance for auto liability coverage from July 1, 2026, to July 1, 2027, in the amount of $451,830.
end
EXPLANATION OF FISCAL/FTE IMPACTS
The costs associated with auto insurance are included in the 2026 Office of Risk and Emergency Management Department budget in the General Fund and are funded with property tax levy.
|
Fund |
Department |
Program |
Funding Source |
2026 Amended Budget |
|
General Fund |
Office of Risk and Emergency Management |
Auto Insurance |
Property Tax Levy |
$547,967 |
☐ None ☒ Current budget ☐ Other
☐ Amendment Requested ☐ New FTE(s) requested
RESOLUTION
body
WHEREAS, Dakota County purchases insurance for automobile physical damage and liability coverage; and
WHEREAS, the current policy on automobile insurance will expire on July 1, 2026; and
WHEREAS, an evaluation of the marketplace for competitive pricing was completed; and
WHEREAS, based on the evaluation of the marketplace, staff is recommending renewal of the automobile insurance coverage with Travelers Insurance.
NOW, THEREFORE, BE IT RESOLVED, That the Dakota County Board of Commissioners hereby authorizes the Director of Risk and Emergency Management to purchase the following insurance to be paid at current rates from the Office of Risk Management insurance budget:
Automobile Insurance
Travelers Insurance July 1, 2026 - July 1, 2027 Premium $451,830
end
PREVIOUS BOARD ACTION
25-289; 06/24/25
ATTACHMENTS
Attachment: Auto Insurance Premium Renewal Summary
BOARD GOALS
☐ Thriving People ☐ A Healthy Environment with Quality Natural Resources
☐ A Successful Place for Business and Jobs ☒ Excellence in Public Service
CONTACT
Department Head: Jenny Groskopf
Author: Sarah Fenske